On June 14, the European Securities and Markets Authority added CME Group to its list of recognized third-country central counterparties. CME is the first U.S. CCP to be included in the new regime, which requires non-EU clearinghouses to obtain recognition from ESMA to operate in Europe. To date, ESMA has recognized 19 clearinghouses from 10 countries outside of Europe.
"Today's action by ESMA will ensure that CME Clearing will be able to continue to provide the clearing services that our global customers depend upon to manage risk," CME Executive Chairman and President Terry Duffy said in a statement. "It also will ensure that U.S. markets are not put at a disadvantage in our highly competitive global marketplace."
The move came after the Commodity Futures Trading Commission signed a memorandum of understanding with ESMA on clearinghouse oversight. The agreement establishes a framework for cooperation with respect to clearinghouses in the U.S. that seek recognition in Europe.
